Renovate or relocate, what to consider and how to decide?

Homeowners often consider renovation to update a property’s appearance, accommodate a growing family, or increase market value.

One such consideration is to weigh the cost of renovations versus relocation against the cost of buying a bigger or better home to suit your needs. Elaine Vandayar of Seeff Richards Bay notes that a homeowner’s lifestyle and future plans are significant considerations.

The Case for Renovating

Renovating is frequently the preferred option for those who have a strong connection to their community and no immediate plans to move. It allows for complete customisation to meet specific needs and is often more cost-effective than the total expense of moving. Improving curb appeal through repainting, landscaping, or replacing front doors and windows can significantly enhance long-term marketability.

However, homeowners must be wary of overcapitalisation which results from investing more into the house than the potential increase in property value. To mitigate costs, homeowners should consult with real estate agents assess if the renovation costs are justified by the potential return on investment.

The Case for Moving

Renovation costs can quickly escalate and become a nightmare rather than adding the value that you had hoped. It therefore often may be more cost effective to move rather than renovate, especially if you find a suitable home.

Moving becomes the better option when a home no longer suits a family’s size or lifestyle requirements. Relocating offers the benefit of a new layout, better amenities such as a larger erf or pool, and potentially fewer maintenance issues. Despite these pros, moving involves considerable costs, including real estate agent fees, transfer costs, and moving expenses. It is also time-consuming and can disrupt established social connections and daily routines.

Preparing to Sell

If the goal is to sell, Samuel Seeff, chairperson of the Seeff Property Group, advises a “fix before you sell” approach rather than major renovations aimed at profit. Buyers typically look for well-maintained basics rather than expensive extras.

Essential maintenance includes general repairs to broken fittings and finishes, and a fresh coat of neutral paint, as bright colours may deter buyers. Ensure all building works are completed and signed off by the local council. All functional security features such as burglar bars, alarms, and armed response links must be fully operational.

Elaborate finishes, such as exotic gardens or unnecessary extra rooms such as a third lounge or gymnasium, often do not add equivalent value. Before making a final decision, homeowners should compare their property to others in the area and consult an experienced agent to ensure their home remains within prevailing price bands.

Issued by Gina Meintjes